Oil in Kenya – Kenya Discovers Oil in Turkana

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Kenya announced its first oil discovery on Monday 26 March 2012, The Oil was found in Ngamia well Turkana County in the northern part of Kenya where Africa-focused British firm Tullow Oil Plc has been exploring for oil, and was now checking on the commercial viability of the find.

Kenyan Minister for Energy Kiraitu Murungi shows off a sample of crude oil discovered in Kenya

Kenyan Minister for Energy Kiraitu Murungi shows off a sample of crude oil discovered in Kenya

Tullow Oil plc (Tullow) announces that the Ngamia-1 exploration well in Kenya has encountered in excess of 20 metres of net oil pay.

The well, located in the Turkana County of Kenya Block 10BB, was drilled to an intermediate depth of 1,041 metres and has been successfully logged and sampled. Moveable oil with an API greater than 30 degrees has been recovered to surface. This oil has similar properties to the light waxy crude discovered in Uganda.

The Ngamia structure is the first prospect to be tested as part of a multi-well drilling campaign in Kenya and Ethiopia. Many leads and prospects similar to Ngamia have been identified and following this discovery the outlook for further success has been significantly improved.

The well will now be drilled to a depth of approximately 2,700 metres to explore for deeper potential. On completion of operations, the Weatherford 804 rig will move to the Tullow Operated Block 10A where the Paipai-1 wildcat will spud in 2H 2012.

About Tullow Oil plc (Tullow)

Tullow has a 50% operated interest in multiple licences in the Kenya and Ethiopia Rift Basins covering in excess of 100,000 square kilometres. The Turkana County, where the Ngamia discovery has been made, is one of seven basins mapped in Tullow’s acreage and is similar in size to the 9,000 square kilometre Lake Albert Rift basin in Uganda.

In 2010, Tullow signed agreements with Africa Oil and Centric Energy to gain a 50% operated interest in five Kenyan licences; Blocks 10BA, 10BB, 10A, 12A and 13T covering over 67,000 sq km (six times the size of the licences in Uganda). In addition, Tullow gained a 50% operated interest in the South Omo Block in Ethiopia. The combined acreage covers the Turkana Rift Basin which is similar in character to the Lake Albert Rift Basin and also a south-east extension of the geologically older Sudan rift basins trend. Tullow also farmed in to offshore block L8 in 2011.

What International media houses – BBC, CNN, Guardian, Reuters have reported about Oil in Kenya

BBC – Kenya oil discovery after Tullow Oil drilling

Oil has been discovered in Kenya after exploratory drilling by Anglo-Irish firm Tullow Oil, President Mwai Kibaki has said.

The discovery was made in the country’s north-western Turkana region.

Mr Kibaki said it was “the first time Kenya has made such a discovery” and called it a “major breakthrough”.

Kenya is a regional business and tourist hub with the largest economy in East Africa, although its relative wealth is not based on mineral riches.

The Kenyan president said Tullow would drill more wells to establish the commercial viability of the oil.

“It is… the beginning of a long journey to make our country an oil producer, which typically takes in excess of three years. We shall be giving the nation more information as the oil exploration process continues,” he said.

Tullow Oil, which also struck oil in neighbouring Uganda, said the Kenyan find had exceeded their expectations.

“This is an excellent start to our major exploration campaign in the East African rift basins of Kenya and Ethiopia,” said Angus McCoss, the company’s exploration director.

He added: “To make a good oil discovery in our first well is beyond our expectations and bodes well for the material programme ahead of us.”

Tullow has found oil in, or off the coast of, a number of African countries, including Ghana and Sierra Leone.

Source:  BBC

CNN: Oil discovered in Kenya

Kenya has finally struck oil after decades of exploration, the country’s president announced Monday.

President Mwai Kibaki called the discovery a “major breakthrough,” though it will take more than three years before the country can become an oil producer.

“This is the first time Kenya has made such a discovery and it is very good news for our country,” Kibaki said at a state function in Nairobi.

British-based Tullow Oil said it established more than 20 meters (65 feet) of net oil pay, which refers to the depth of the oil reservoir.

“This is an excellent start to our major exploration campaign in the East African rift basins of Kenya and Ethiopia,” the company’s exploration director, Angus McCoss, said in a written statement. “To make a good oil discovery in our first well is beyond our expectations and bodes well for the material program ahead of us.”

The company said it plans to drill deeper and drill multiple other wells to seek more oil.

Tullow said it discovered the oil well in Turkana County, in the northwestern part of the country near Uganda, where the company is already a major player in the country’s oil fields.

Kenya is the second country, after Uganda, to have discovered oil in East Africa.

Richard Leakey, a noted paleontologist and environmentalist, told CNN there could be significant benefits from the oil find.

“I have always thought there was oil there and I have encouraged the search for oil for the past 40 years because of our geological surveys,” said Leakey, who has been working in the Turkana region for four decades. “In the end, I believe there will be a significant find.”

Leakey says will take five to 10 years for the oil find to benefit Kenyans.

“The hope is that Kenya won’t squander the money before it has made anything,” he said.

Kenya must now safeguard against oil spills and environmental pollution, he said, and make sure local people benefit.

Tullow has more than 90 production and exploration licenses in 22 countries in Africa, Europe, South America and Asia.

National Oil Corp. of Kenya has been directing the search of oil in the country since its began operating in 1984, according to its website.

Source:  CNN

Guardian: Kenya strikes oil for first time

Kenya announced its first oil discovery on Monday, saying it was found in the northern part of the country where Africa-focused British firm Tullow Oil Plc has been exploring for oil, and was now checking on the commercial viability of the find.

President Mwai Kibaki said in a statement read on live television that Tullow had encountered in excess of 20 metres of net oil pay, and would drill more wells in the area to ascertain the commercial viability of the find.

“This is the first time Kenya has made such a discovery and it is very good news,” Kibaki said. “It is, however, the beginning of a long journey to make our country an oil producer, which typically takes in excess of three years.” Shares in Tullow jumped 2.5% in London immediately after the announcement of its oil find in Kenya.

Kenya and its neighbours in east Africa as well as the Horn of the continent have become a hot spot for oil and gas exploration in recent years, spurred by new finds.

South Sudan, which split from Sudan in July under a 2005 peace deal that ended decades of civil war, is an oil producer, while commercial oil deposits were found in Uganda, and there are vast natural gas deposits in Tanzania and Mozambique.

At a joint news conference with Tullow executives, Kenya’s energy minister Kiraitu Murungi displayed a glass bottle of the “light, waxy crude oil” found by the company.

“We will make sure that the oil in Kenya is a blessing for the people of Kenya and not a curse,” Murungi said, in reference to other countries whose people remain mired in poverty despite having struck oil.

Analysts said although it was still too soon to tell the significance of Tullow’s discovery, with the exact quantity or deposits as yet unknown, it was worth noting that Tullow had stated the find went beyond their expectations. “This is likely to attract interest from other explorers in the coming months, keen to take advantage of this early find,” London-based Marc Mercer, Africa associate at the Eurasia Group, a political risk consultancy, said.

“If considerable reserves are found along the quantity discovered in Uganda, then this is somewhat of a game changer for Kenya and they are well placed to develop the industry for export given their geographic location.”

Source: Guardian

Reuters: Kenya strikes oil, to check commercial viability

Kenya announced on Monday its first oil discovery, saying it was found in the northern part of the country where Africa-focused British firm Tullow Oil Plc has been exploring for oil, and was now checking on the commercial viability of the find.

Kenya and its neighbours in east Africa as well as the Horn of the continent have become a hot spot for oil and gas exploration in recent years, spurred by new finds.

South Sudan, which split from Sudan in July under a 2005 peace deal that ended decades of civil war, is an oil producer, while commercial oil deposits were found in Uganda, and there are vast natural gas deposits in Tanzania and Mozambique.

President Mwai Kibaki said in a statement read on live television that Tullow had encountered in excess of 20 metres of net oil pay, and would drill more wells in the area to ascertain the commercial viability of the find.

“This is the first time Kenya has made such a discovery and it is very good news,” Kibaki said. “It is however the beginning of a long journey to make our country an oil producer, which typically takes in excess of 3 years.”

Shares in Tullow jumped 2.5 percent in London immediately after the announcement of its oil find in Kenya.

At a joint news conference with Tullow executives, Kenya’s Energy Minister Kiraitu Murungi displayed a glass bottle of the “light waxy crude oil” found by the company.

“We will make sure that the oil in Kenya is a blessing for the people of Kenya and not a curse,” Murungi said, in reference to other countries whose people remained mired in poverty despite having struck oil.

Analysts said although it was still too soon to tell the significance of Tullow’s discovery, with the exact quantity or deposits as yet unknown, it was worth noting that Tullow had stated that the find went beyond their expectations.

“This is likely to attract interest from other explorers in the coming months, keen to take advantage of this early find,” London-based Marc Mercer, Africa associate at the Eurasia Group, a political risk consultancy, said.

“If considerable reserves are found along the quantity discovered in Uganda, then this is somewhat of a game changer for Kenya and they are well placed to develop the industry for export given their geographic location.”

Kenya is positioned on Africa’s east coast, which could be a hub serving fast-growing Asian markets through its Mombasa port and the Lamu port, now in the initial stages of construction.

MORE DRILLING TO FOLLOW

Tim O’Hanlon, Tullow’s vice president for Africa told reporters his company had been drilling the well since January this year, and it was the first prospect to be tested as part of a multi-well drilling campaign in Kenya and Ethiopia.

Tullow Oil operates Kenya’s block 10BB with a 50 percent working interest and Canada’s Africa Oil Corp., which holds the remaining stake.

Africa Oil’s shares also rose after the announcement.

Tullow said it had been drilling the Ngamia-1 well on block 10BB, in the Lokichar basin in Turkana County. The well had reached a depth of 1,041 metres at the time of discovery.

“We have many other prospects to drill of this size and even larger ones, and we will do that,” O’Hanlon said.

“We have had similar discoveries in Uganda… I guarantee you that Tullow will now accelerate its efforts to make the dream come true for everybody.”

Tullow discovered oil in Uganda to the west of the country, along the border with the Democratic Republic of Congo, in 2006.

UK’s BG Group said on Monday it discovered more gas than estimated off the coast of Tanzania.

Kenyan officials told Reuters Nairobi would include a tax break for firms exploring for oil and gas in a new law, in a bid to attract even more investments in the sector.

Source: Reuters

Kenya announced its first oil discovery on Monday 26 March 2012, The Oil was found in Ngamia well Turkana County in the northern part of Kenya where Africa-focused British firm Tullow Oil Plc has been exploring for oil, and was now checking on the commercial viability of the find.



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